Weighing Allentown hockey arena pros and cons

April 13, 2012|Bill White

I realize that quoting myself might come off as less than humble. For what it's worth, this will have more to do with demonstrating my consistency than my profundity.

Reacting to the criticism that Bethlehem's "soul" was at stake in the fight over whether to put a casino on the South Side, I suggested seven years ago that the city's soul was safe, whatever happened.

"What I really worry about is the soul of the Lehigh Valley," I wrote, "that wonderful blend of urban and rural, rich history and rich farmland.

"As our cities struggle, as more and more farmland gives way to town houses and strip malls, that soul is being sold every day. And we won't reverse the process by widening Route 22 or rebuilding highway interchanges. We'll reverse it by strengthening our cities, bringing people and commerce back, and preserving the open space we have left.

I resurrect this comment today as I tell you not to buy into the idea that it's diabolical for the state to offer rich tax incentives to spur development of a downtown Allentown hockey arena and other projects. I'm sympathetic to some of the complaints I've heard, but I'm not the least bit sympathetic to this one.

We have made it very easy to macadam our way to urban sprawl. If we can reverse that process, at least a little bit, I'm all for it, just as I was when I pushed for that casino to anchor the reuse of all those Bethlehem Steel brownfield acres, which is continuing today in very exciting ways.

Still, I recognize what an imperfect route Allentown has taken to what it hopes will be its rejuvenation. So let's look at some of the pros and cons.

Con. Some successful businesses that were meeting residents' needs in the center city area were displaced to make way for the downtown's transformation, and there are legitimate questions about whether some of them were dealt with as honestly as they should have been.

Pro. Would you seriously argue that the city was better served by that downtown than it would be by one that is anchored by an arena, hotel, new office buildings and new shopping areas?

Con. Many aspects of these plans, including the specifics of the financing approach, were played so close to the vest that it ended up fomenting resentment and distrust, particularly among the suburban communities whose earned income taxes will be affected. This resentment and distrust ultimately led to a lawsuit that has the potential to delay the project.

Pro. Finance plan architect Sen. Pat Browne has offered assurances that the receipt of the suburbs' EIT money would only be delayed and almost certainly would arrive in full eventually. I can't believe the suburban communities really want to pursue a lawsuit to its completion or to wreck the timetable for this project, so I'm hopeful that some kind of agreement eventually will be reached so their interests are protected to their satisfaction.

Con. Some of the revelations about just how lucrative this financing plan will be for developers, most notably their access to millions in state cigarette tax money through an ingenious scheme, are extremely disquieting, particularly given the personal ties between Browne, his lobbyist wife and the developers.

Pro. The project largely is being financed with state money, not local tax dollars. I like seeing state funds directed to development in our area rather than elsewhere in the state, where they usually end up. None of this would be happening without that financing plan.

Con. These tax breaks give center city developers a tremendous edge over those elsewhere, who will have to charge more for office space and may lose tenants and businesses to downtown.

Pro. This brings me back to where I started. When you consider all the advantages that have drawn and continue to draw development and people out of the cities and into the suburbs, I'm fine with seeing the playing field leveled a little bit. The suburbs still will enjoy the advantages of more convenient parking and traffic flow, lower taxes and lower crime rates.

The difference between the pros and the cons in almost every case is between small picture and big picture. I agree with many of the criticisms that have been leveled at Mayor Ed Pawlowski and the concerns that have been expressed over the way all this has transpired. But in the end, if these plans are successful, this city and this region will be big winners — and the stumbles along the way will be long forgotten.